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Case of No Building Permit- Our Life or Their Building?

I have this neighbor who constructed a 3-storey building that kissed our roof and covered our windows.

We own the house but we rent the lot.

Here's the scenario:

1. The OWNER passed away in 1983 and was NOT able to transfer the title to his children. However, we continued to pay the monthly rent for the lot to his SON who was only issuing receipts bought in Recto... not an official receipt.

4. One of the settlers is a family claiming they have the right for the property because they are grandchildren of the OWNER. (actually, apo lang sila sa pinsan so i don't think they have the right since may immediate grandchildren yung owner and the land is NOT donated to them).